Preferred Apartment Communities, Inc. announced that it acquired four recently delivered Class A adaptive re-use office buildings totaling approximately 186,779 square feet in a development known as Armour Yards from Third & Urban and institutional investors advised by J.P. Morgan Asset Management.  Armour Yards is strategically located directly between Buckhead and Midtown Atlanta. The buildings together are 96% leased to a diverse mix of credit-worthy tenants led by Coyote Logistics, a subsidiary of UPS, with a weighted average remaining lease term of more than seven years.  The acquisition increases the size of our office portfolio to five assets totaling more than 1.5 million square feet across the Southeast and Texas.

PAC acquired this asset through its wholly-owned subsidiary, Preferred Office Properties, LLC.  Boone DuPree, the Chief Executive Officer of Preferred Office Properties stated, "Armour Yards is a high quality development that gives us exposure to a growth segment of the market by catering to customers that want a different workplace experience from the traditional glass tower.  This acquisition provides us the opportunity to invest in an asset having a stable, impressive rent roll and located in what we believe is an irreplaceable infill site."  Mr. DuPree added, "Third & Urban and J.P. Morgan developed a first class project and we are pleased to continue their vision." 

The Company financed the acquisition utilizing a non-recourse first mortgage loan from John Hancock.  The first mortgage loan is approximately $40.0 million, bears interest at a fixed rate of 4.10% per annum, has a ten-year term and amortizes beginning in year three based on a 30-year schedule.  There are no loan guaranties provided by PAC or our operating partnership.